Calculate the labour efficiency variance

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Reference no: EM132749224

Question - Standard Costing - Rich Brand presents the following data about the operations for the year ended 30 June 2019

DESCRIPTION

ACTUAL

BUDGET

Material cost

20,000

30,000

Labour cost

40,000

38,000

Overhead cost

60,000

42,000

Total cost

120,000

110,000

Units produced

140,000

160,000

The company estimated to consume 60 000kg of raw materials but 56 000kg was actually consumed. The company estimated to pay labour at 2.00 per hour but 2.50 per hour was actually paid

Required -

1. Calculate the material cost variance.

2. Calculate the material price variance.

3. Calculate the material usage variance

4. Calculate the labour cost variance.

5. Calculate the labour rate variance.

6. Calculate the labour efficiency variance.

Reference no: EM132749224

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